Home Appraisal Process

There are a number of misconceptions about what a Real Estate Appraisal is, what it covers, and what it does not cover. The purpose of an appraisal is to develop a reasonable opinion of Market Value. The Uniform Standards of Professional Appraisal Practice (USPAP) outlines how Market Value should be defined:

A type of value, stated as an opinion, that presumes the transfer or sale of the property as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal…

Simply put, an appraisal is performed for the purposes of determining what a home would sell for, within a specific time frame, in its current condition if it was listed for sale on the date of the inspection (or any other predetermined date). The appraisal is not a determination of structural soundness or mechanical reliability. Health and safety concerns that are readily visible are taken into consideration, however the valuation is performed with the assumption that, unless easily noticeable, the subject is structurally sound and the mechanicals are fully functioning.

All factors and upgrades are taken into consideration when valuing a property, including view, location, remodeling, additions, lot size, pool/spa utility, and all other possible amenities. I encourage all clients to take the time to compile a list of upgrades performed at any point in the history of the home, including but not limited to kitchen, bathroom, living area, and flooring upgrades, upgraded insulation, the addition of crown molding, roofing upgrades, any energy efficient items, landscaping upgrades, and any room additions (permits always helpful).

I always arrive on time in a professional manner to an appraisal appointment. I will begin on the outside of the home to measure the total gross living area and take note of all exterior amenities. I will then notify you that I am ready to enter the home and begin upstairs, if applicable, to complete the measurement process. In every room of the home I will take note of the flooring, fixtures, countertops, lighting, additions, condition, and overall quality of construction at the time of inspection. I will then take a picture of that room and proceed accordingly through every room of the home. The process takes approximately 20 – 30 minutes and is not as invasive as a full home inspection. Most of the time taken to complete the appraisal goes into market research and preparing the report. The appraisal will be completed within 48 hours of inspection and will be delivered to the client in whatever format they prefer. Once completed, I am happy to go over all aspects of the appraisal and answer any questions or concerns you may have. My goal is to be as transparent as possible through the process so that my clients feel confident in the market value of the home and well informed through the process.